Doosan Infracore Slumps on Unexpected Global Share Sale Report

November 5, 2013 Leave a comment

Doosan Infracore Slumps on Global Share Sale Report: Seoul Mover

Doosan Infracore Co. (042670), South Korea’s largest construction equipment company, declined the most in more than two years in Seoul trading after a report of a possible $400 million depositary-receipt sale sparked investor concern that it would dilute shareholdings. Doosan Infracore fell 8.3 percent, the most since October 2011, to close at 13,250 won. The stock was the second-worst performer on the MSCI Asia Pacific Index. Doosan Heavy Industries & Construction Co. (034020), its biggest shareholder, dropped 3.3 percent. The building-equipment maker is considering selling depositary receipts overseas, Doosan Infracore said in a filing after the report by MoneyToday. Doosan Infracore hired JPMorgan Chase & Co. and HSBC Holdings Plc to help sell the receipts to raise funds for possible future investments in China and Europe as well as for its Bobcat unit in the U.S., MoneyToday reported today, citing unidentified investment banking officials. “News of Doosan Infracore seeking a global depositary receipt sale was totally unexpected,” said Richard Park, an analyst at Korea Investment & Securities Co. in Seoul. “If the report is correct, it won’t be good news for investors.” Doosan Infracore agreed to buy Bobcat for $4.9 billion from Ingersoll-Rand Co. in 2007.

To contact the reporter on this story: Kyunghee Park in Singapore at kpark3@bloomberg.net

Filed under Investing Process, Macro Trends

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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